81 FR 40152 - Civil Monetary Penalty Inflation Adjustment
NATIONAL CREDIT UNION ADMINISTRATION Federal Register Volume 81, Issue 119 (June 21, 2016)
Federal Register Volume 81, Issue 119 (June 21, 2016)
| Page Range | 40152-40158 | |
| FR Document | 2016-14719 |
[Federal Register Volume 81, Number 119 (Tuesday, June 21, 2016)] [Rules and Regulations] [Pages 40152-40158] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14719] ======================================================================= ----------------------------------------------------------------------- NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Part 747 RIN 3133-AE59 Civil Monetary Penalty Inflation Adjustment AGENCY: National Credit Union Administration (NCUA). ACTION: Interim final rule with request for comments. ----------------------------------------------------------------------- SUMMARY: The NCUA Board (Board) is amending its regulations to adjust the maximum amount of each civil monetary penalty (CMP) within its jurisdiction to account for inflation. This action, including the amount of the adjustments, is required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. DATES: This interim final rule is effective July 21, 2016. Comments must be received on or before July 21, 2016. ADDRESSES: You may submit comments by any of the following methods (Please send comments by one method only):Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. NCUA Web site: https://www.ncua.gov/regulation-supervision/Pages/rules/proposed.aspx. Follow the instructions for submitting comments. Email: Address to [email protected]. Include ``[Your name] Comments on ``Civil Monetary Penalty Inflation Adjustment'' in the email subject line. Fax: (703) 518-6319. Use the subject line described above for email. Mail: Address to Gerard Poliquin, Secretary of the Board, National Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428. Hand Delivery/Courier: Same as mail address. Public Inspection: All public comments are available on the agency's Web site at http://www.ncua.gov/RegulationsOpinionsLaws/comments as submitted, except as may not be possible for technical reasons. Public comments will not be edited to remove any identifying or contact information. Paper copies of comments may be inspected in NCUA's law library at 1775 Duke Street, Alexandria, Virginia 22314, by appointment weekdays between 9:00 a.m. and 3:00 p.m. To make an appointment, call (703) 518-6546 or send an email to [email protected]. FOR FURTHER INFORMATION CONTACT: Ian Marenna, Senior Trial Attorney, at 1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540. SUPPLEMENTARY INFORMATION: I. Legal Background II. Calculation of Adjustments III. Regulatory Procedures I. Legal Background A. Statutory Requirements and Overview of Changes Enacted in 2015 The Debt Collection Improvement Act of 1996 \1\ (DCIA) amended the Federal Civil Penalties Inflation Adjustment Act of 1990 \2\ (FCPIA Act) to require every federal agency to enact regulations that adjust each CMP provided by law under its jurisdiction by the rate of inflation at least once every four years. The Board most recently adjusted CMPs within its jurisdiction in September 2015.\3\ --------------------------------------------------------------------------- \1\ Public Law 104-134, sec. 31001(s), 110 Stat. 1321-373 (Apr. 26, 1996). The law is codified at 28 U.S.C. 2461 note. \2\ Public Law 101-410, 104 Stat. 890 (Oct. 5, 1990), also codified at 28 U.S.C. 2461 note. \3\ 80 FR 57284 (Sept. 23, 2015). --------------------------------------------------------------------------- In November 2015, Congress further amended the CMP inflation requirements in the Bipartisan Budget Act of 2015,\4\ which contains the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 amendments).\5\ This [[Page 40153]] legislation provides for an initial ``catch-up'' adjustment of CMPs in 2016, followed by annual adjustments. The catch-up adjustment will generally re-set CMP maximum amounts by setting aside the inflation adjustments that agencies made in prior years and instead calculating inflation with reference to the year when each CMP was enacted or last modified by Congress. --------------------------------------------------------------------------- \4\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015). \5\ 129 Stat. 599. --------------------------------------------------------------------------- The 2015 amendments made several procedural changes including: (1) Starting in 2016, each agency must adjust its CMPs for inflation annually by the date set forth in the 2015 amendments; (2) the rounding ranges and procedure that applied before the 2015 amendments no longer apply, and agencies instead must round increases to the nearest dollar; (3) the ten percent cap on the first adjustment of any CMP has been eliminated; (4) the amount of the 2016 adjustment is limited to 150 percent of the amount of each CMP on the date that the 2015 amendments were enacted; and (5) October, rather than June, will be the relevant month for determining the percentage increase in inflation between relevant years.\6\ --------------------------------------------------------------------------- \6\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015). --------------------------------------------------------------------------- The legislation also modified the process by making the following additional changes: (1) In 2016, agencies will make the required adjustments through an interim final rule by July 1, 2016, to be effective by August 1, 2016; (2) in 2017 and subsequent years, agencies will make the required adjustments through direct final rules published and effective by January 15 of each year; (3) the adjusted maximum amounts will apply to CMPs issued after the adjustment takes effect, including cases in which the associated violation predates the adjustment; (4) the Office of Management and Budget (OMB) will publish annual guidance for agencies; (5) agencies must publish information regarding CMPs in their annual financial reports; and (6) the Government Accountability Office will report to Congress annually on agencies' compliance with the statute.\7\ --------------------------------------------------------------------------- \7\ Id. --------------------------------------------------------------------------- The basic framework for the inflation calculation process remains the same in that agencies must calculate the increase in inflation according to a cost-of-living index and apply this percentage to each CMP to establish a new maximum amount. The resulting adjustment permits but does not require assessment at the new maximum level. Agencies must publish the adjusted maximum amounts in the Federal Register, as they did prior to the 2015 amendments. However, the 2015 amendments do make a significant change to the calculations for the first year by requiring an initial catch-up adjustment to re-set penalty levels.\8\ In 2016, agencies must measure inflation by comparing the cost-of-living index for the year in which each CMP was established or last adjusted under a provision other than the FCPIA Act with the index for 2015.\9\ That is, agencies must disregard the inflation adjustments that they have made under the FCPIA Act since 1996, determine when Congress initially established or last modified each CMP, and adjust for inflation between that year and 2015. This calculation is based on the amount of the CMP as Congress set it, not the adjustments that agencies have made since 1996 under the FCPIA Act. The amount of the catch-up adjustment is separately limited to 150 percent of the CMP maximum in effect as of November 2, 2015, when the 2015 amendments became effective.\10\ --------------------------------------------------------------------------- \8\ Public Law 114-74, sec. 701(b)(2)(B), 129 Stat. 600, codified at 28 U.S.C. 2461 note. \9\ Id. \10\ Id. --------------------------------------------------------------------------- The next section provides more detail on the revised inflation procedures. B. Statutory Procedures for Calculating Adjustments and OMB Guidance This section provides a detailed explanation of the inflation adjustment procedures under the 2015 amendments, including the 150 percent cap on the 2016 adjustment, the discretionary exception that agencies may invoke to limit the required increases based on negative economic impact or social costs, and an exception that agencies may apply when a CMP has been increased by a greater amount than the current calculation within the preceding 12 months. The 150 percent cap applies to one CMP within NCUA's jurisdiction, namely the CMP for violating NCUA security requirements.\11\ The Board does not seek to invoke the discretionary exception based on negative economic impact or social costs or the exception for greater increases in the preceding 12 months. --------------------------------------------------------------------------- \11\ 12 U.S.C. 1785(e)(3). --------------------------------------------------------------------------- In the FCPIA Act, the term ``this Act'' is used throughout to refer to the entire FCPIA Act as amended, not merely the 2015 amendments or prior amendments. In 2016, agencies must determine the percentage increase in inflation by comparing the October 2015 CPI-U with the CPI- U for October in the year ``during which the amount of such civil monetary penalty was established or adjusted pursuant to a provision of law other than this Act.'' \12\ Also, the 2015 amendments provide that the percentage increase in inflation must be applied to the CMP ``as it was most recently established or adjusted under a provision of law other than this Act.'' \13\ The increase must be rounded to the nearest dollar.\14\ The new maximum CMP is calculated by dividing the October 2015 CPI-U by the CPI-U for October of the year when Congress established or last modified the CMP. The resulting multiplier is applied to the original or modified maximum amount set by Congress to find the new maximum amount. --------------------------------------------------------------------------- \12\ Public Law 114-74, sec. 701(b)(2)(A), 129 Stat. 600, codified at 28 U.S.C. 2461 note. The CPI-U is published by the Department of Labor, Bureau of Labor Statistics, and is available at its Web site: http://www.bls.gov/cpi/. \13\ Public Law 114-74, sec. 701(b)(2)(B), 129 Stat. 600, codified at 28 U.S.C. 2461 note. \14\ Public Law 114-74, sec. 701(b)(2)(A), 129 Stat. 600, codified at 28 U.S.C. 2461 note. --------------------------------------------------------------------------- In making the calculations, the Board refers to the year in which the statute establishing the CMP was enacted, even if the statute provided that the CMP would not go into effect until a later year. In 2015, the Board referred to the year in which the statutes establishing the CMPs became effective.\15\ The Board has determined that disregarding delayed effective dates is more consistent with the FCPIA Act's language, as well as OMB's guidance.\16\ --------------------------------------------------------------------------- \15\ The CMPs for senior examiner conflicts of interest, appraisal independence standards, and display of the NCUA insurance logo were enacted with delayed effective dates. \16\ Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M-16-06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 3, 6 (2016). --------------------------------------------------------------------------- After completing this calculation for each CMP, agencies must also consider the 150 percent cap, the exception based on a greater increase within the preceding 12 months of the required adjustment, and the exception based on negative economic impact or social costs. These considerations are described in detail below. First, ``the amount of the increase in a civil monetary penalty . . . shall not exceed 150 percent of the amount of that civil monetary penalty on the date of enactment'' of the 2015 amendments.\17\ This mandatory cap applies only to the 2016 initial catch-up adjustment. The 150 percent cap applies to the amount of the increase in the CMP. Accordingly, the final maximum amount for each CMP is capped at 250 [[Page 40154]] percent of its current level.\18\ Based on the Board's calculations, this cap applies only to NCUA's security requirements CMP.\19\ --------------------------------------------------------------------------- \17\ Public Law 114-74, sec. 701(b)(2)(B), 129 Stat. 600, codified at 28 U.S.C. 2461 note. \18\ For consistency, the Board refers to this limitation as the 150 percent cap throughout this rule. \19\ 12 U.S.C. 1785(e)(3). --------------------------------------------------------------------------- Second, if a CMP ``is, during the 12 months preceding a required cost-of-living adjustment, increased by an amount greater than the amount of the adjustment required . . ., the head of the agency is not required'' to make the adjustment.\20\ The Board has compared the projected increases with the increases that it made in 2015.\21\ The only CMP that was increased by a greater amount in 2015 than it would be under the current adjustments is the appraisal independence standards CMP.\22\ The Board will not invoke the exception in this case because: (1) The difference between the existing maximum and the new maximum under the current adjustments is immaterial; and (2) setting the new maximum without invoking this exception will place NCUA's CMP at the same level as the federal banking regulators and the Consumer Financial Protection Bureau, which will be adjusting this CMP for the first time this year. --------------------------------------------------------------------------- \20\ Public Law 114-74, sec. 701(b)(1)(D), 129 Stat. 600, codified at 28 U.S.C. 2461 note. \21\ The Board notes that this exception is not limited to the initial catch-up adjustment and could apply in the future. \22\ 15 U.S.C. 1639e(k). --------------------------------------------------------------------------- Third, only for the 2016 adjustment, an agency may seek to limit the amount of an adjustment if it determines that the otherwise- required adjustment would have a ``negative economic impact'' or that ``the social costs'' of the increase ``outweigh the benefits.'' \23\ To invoke this discretionary exception in 2016, an agency must first publish a notice of proposed rulemaking with an opportunity to comment on the proposed invocation of the exception, and the Director of OMB must concur with the agency's determination.\24\ OMB's guidance states that agencies should consult with OMB before proposing to invoke this limitation and must submit the proposal to OMB by May 2, 2016.\25\ The memorandum also states that OMB expects ``determination concurrences'' to be rare.\26\ --------------------------------------------------------------------------- \23\ Public Law 114-74, sec. 701(b)(1)(D), 129 Stat. 599-600, codified at 28 U.S.C. 2461 note. \24\ Id. \25\ Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M-16-06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 3 (2016). \26\ Id. --------------------------------------------------------------------------- The statute does not define ``negative economic impact'' or ``social costs.'' Given these statutory criteria and historical trends in NCUA's CMP assessments, the Board will not seek to invoke this exception for any of its CMP authorities. In addition to the statute, the Board has reviewed OMB's guidance. On February 24, 2016, as required by the 2015 amendments, OMB published guidance for agencies to implement the new procedures, including the 2016 catch-up adjustment.\27\ OMB's guidance covers the following issues: (1) Identifying CMPs to which the law applies; (2) completing the 2016 catch-up adjustment; (3) making future inflation adjustments; and (4) performing agency oversight of inflation adjustments. The Board has reviewed the guidance and finds that the Board's calculations of the increases and the 150 percent cap are wholly consistent with the guidance. Further, the Board finds that it has appropriately identified CMPs subject to adjustment under the FCPIA Act. All of the adjusted CMPs are set by federal law at specific maximums, are assessed by NCUA under the Federal Credit Union Act or other federal statutes, and are assessed or enforced through agency proceedings or civil actions in the federal courts.\28\ The Board will also review OMB's guidance in connection with future adjustments and its annual financial reporting requirement. --------------------------------------------------------------------------- \27\ Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M-16-06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2016). \28\ 28 U.S.C. 2461 note, Sec. 3(2). --------------------------------------------------------------------------- In sum, under the statute, the Board must determine: (1) When Congress established or most recently modified each CMP; (2) the amount of each CMP as set by Congress at that time; (3) the increase in each CMP based on the CPI-U; (4) whether the increase must be limited by the 150 percent cap; (5) whether the Board will invoke the exception based on a greater increase in a CMP maximum amount in the preceding 12 months; and (6) whether the Board will seek to invoke the exception to limit the increases based on negative economic impact or social costs. Accordingly, the Board has reviewed the CMPs within its jurisdiction to determine when Congress established or last modified each CMP and to determine the amount set by Congress. Next, the Board applied the appropriate inflationary multiplier to the maximum amount of each CMP as it was established or last modified by Congress in order to determine the new maximum. Finally, the Board considered the 150 percent cap, the exception based on greater increases in the preceding 12 months, and the exception based on negative economic impact or social costs. The next section presents the calculations and applies the 150 percent cap and the two exceptions in detail to arrive at the new maximum CMP amounts to be published in the Federal Register. II. Calculation of Adjustments A. Penalty Adjustment Calculations Consistent with the NCUA's September 2015 CMP adjustments, the Board provides the inflation calculations in table format immediately below. The separate table included in the regulatory text section to be published at 12 CFR 747.1001 shows only the adjusted CMPs, not the calculations leading to the adjusted levels. The table below calculates the projected increase by carrying out the steps described above. The multiplier, which is the quotient of the October 2015 CPI-U divided by the CPI-U for October of the year noted in parentheses, is applied to the maximum amount as originally established or last modified by Congress to calculate the new maximum. The final maximum amount is the lesser of the calculated maximum and the 150 percent cap. [[Page 40155]] Table--Calculation of Maximum CMP Adjustments -------------------------------------------------------------------------------------------------------------------------------------------------------- Adjusted maximum ($) Projected new 150 Percent (lesser of projected Citation Description/tier \29\ Original maximum ($) Multiplier maximum cap ($) \30\ new maximum and 150 percent cap) -------------------------------------------------------------------------------------------------------------------------------------------------------- 12 U.S.C. 1782(a)(3)............. Inadvertent failure to 2,000............... 1.89631 3,787 8,000 3,787. submit a report or the (1989) inadvertent submission of a false or misleading report. 12 U.S.C. 1782(a)(3)............. Non-inadvertent failure 20,000.............. 1.89631 37,872 80,000 37,872. to submit a report or (1989) the non-inadvertent submission of a false or misleading report. 12 U.S.C. 1782(a)(3)............. Failure to submit a Lesser of 1,000,000 1.89631 1,893,610 3,562,500. Lesser of 1,893,610 report or the submission or 1% of total CU (1989) or 1% of total CU of a false or misleading assets. assets. report done knowingly or with reckless disregard. 12 U.S.C. 1782(d)(2)(A).......... Tier 1 CMP for 2,000............... 1.73099 3,462 8,000 3,462. inadvertent failure to (1991) submit certified statement of insured shares and charges due to NCUSIF, or inadvertent submission of false or misleading statement. 12 U.S.C. 1782(d)(2)(B).......... Tier 2 CMP for non- 20,000.............. 1.73099 34,620 80,000 34,620. inadvertent failure to (1991) submit certified statement or submission of false or misleading statement. 12 U.S.C. 1782(d)(2)(C).......... Tier 3 CMP for failure to Lesser of 1,000,000 1.73099 1,730,990 3,562,500 Lesser of 1,730,990 submit a certified or 1% of total CU (1991) or 1% of total CU statement or the assets. assets. submission of a false or misleading statement done knowingly or with reckless disregard. 12 U.S.C. 1785(a)(3)............. Non-compliance with 100................. 1.17858 118 275 118. insurance logo (2006) requirements. 12 U.S.C. 1785(e)(3)............. Non-compliance with NCUA 100................. 6.03650 554 275 275. security requirements. (1970) 12 U.S.C. 1786(k)(2)(A).......... Tier 1 CMP for violations 5,000............... 1.89631 9,468 21,250 9,468. of law, regulation, and (1989) other orders or agreements. 12 U.S.C. 1786(k)(2)(B).......... Tier 2 CMP for violations 25,000.............. 1.89631 47,340 106,250 47,340. of law, regulation, and (1989) other orders or agreements and for recklessly engaging in unsafe or unsound practices or breaches of fiduciary duty. 12 U.S.C. 1786(k)(2)(C).......... Tier 3 CMP for knowingly 1,000,000........... 1.89631 1,893,610 3,812,500 1,893,610. committing the (1989) violations under Tier 1 or 2 (natural person). 12 U.S.C. 1786(k)(2)(C).......... Tier 3 (same) (CU)....... Lesser of 1,000,000 1.89631 1,893,610 3,812,500 Lesser of 1,893,610 or 1% of total CU (1989) or 1% of total CU assets. assets. 12 U.S.C. 1786(w)(5)(A)(ii)...... Non-compliance with 250,000............. 1.24588 311,470 687,500 311,470. senior examiner post- (2004) employment restrictions. 15 U.S.C. 1639e(k)............... Non-compliance with 10,000.............. 1.08745 10,875 27,500 10,875. appraisal independence (2010) standards (first violation). 15 U.S.C. 1639e(k)............... Subsequent violations of 20,000.............. 1.08745 21,749 50,000 21,749. the same. (2010) 42 U.S.C. 4012a(f)(5)............ Non-compliance with flood 2,000............... 1.02819 2,056 5,000 2,056. insurance requirements. (2012) -------------------------------------------------------------------------------------------------------------------------------------------------------- \29\ The table uses condensed descriptions of CMP tiers. Refer to the U.S. Code citations for complete descriptions. \30\ This column displays 250 percent of the current maximums found at 12 CFR 747.1001. [[Page 40156]] B. Application of the 150 Percent Cap and Two Exceptions This section describes in detail the Board's consideration of the 150 percent cap, the exception based on greater increases in the preceding 12 months, and the exception based on negative economic impact or social costs. First, as shown in the table above, the Board has applied the 150 percent cap on the amount of the increase of the initial adjustments and has determined that it must limit the increase in the security requirements CMP.\31\ The other CMPs are not affected. --------------------------------------------------------------------------- \31\ 12 U.S.C. 1785(e)(3). --------------------------------------------------------------------------- Second, the Board has compared the increases calculated above with the increases that it made in September 2015 \32\ to determine whether any of those increases are greater than the increases calculated for 2016. In September 2015, the Board adjusted this CMP to $11,000.\33\ This occurred because under the pre-2015 amendments procedures, the Board rounded the amount of the increase to the nearest multiple of $1,000. Under the amended FCPIA Act, the Board could leave this adjustment in place because ``during the 12 months preceding [the] required cost-of-living adjustment,'' the Board increased the CMP ``by an amount greater than the amount of the adjustment required'' by the new calculation.\34\ Under these circumstances, the Board is ``not required'' to make the otherwise-required adjustment.\35\ The Board has determined that it will not invoke this exception, which is not mandatory. First, the difference between the maximum set in 2015 and the maximum calculated above is immaterial. Second, the Board expects the federal banking regulators and the Consumer Financial Protection Bureau, which also have jurisdiction to enforce this CMP, to make their first adjustment of this CMP this year. By declining to invoke this exception, the Board will set the maximum at the same level as those agencies, which means that parties subject to this CMP will not face differing maximums based on which agency has jurisdiction. This exception does not apply to the other CMPs because the adjustments required in 2016 exceed those made in 2015. --------------------------------------------------------------------------- \32\ These increases are set forth at 80 FR 57285-286 (Sept. 23, 2015). \33\ 80 FR 57285 (Sept. 23, 2015). \34\ Public Law 114-74, sec. 701(b)(1)(D), 129 Stat. 600, codified at 28 U.S.C. 2461 note. \35\ Id. --------------------------------------------------------------------------- Finally, the Board does not seek to invoke the discretionary limitation tied to ``negative economic impact'' or ``social costs'' posed by the otherwise-required increases. The statute and the OMB guidance do not define these terms. In applying these criteria, the Board has considered the overall amount of its CMP assessments and their likely impact on credit unions and individuals. NCUA historically has not assessed CMPs frequently. They have averaged 10.6 a year, or less than one a month, over the past quarter century. Furthermore, when NCUA has assessed CMPs it has not usually assessed them at or near the maximum levels allowed by law, which would be most likely to invoke economic impact or social cost concerns. The Board reviewed the 281 CMP orders that it has issued since 1990 and found that they total approximately $665,000, with an average (mean) value of approximately $2,400. The table at the end of this section summarizes this information. Based on historical trends, third tier CMPs appear likely to remain rare. Moreover, NCUA considers the size of the credit union in determining the amount of a CMP assessment. These factors indicate that the increased maximums will not cause a negative economic impact or social costs. Also, for most of its CMPs, the Board is required by statute to consider potential mitigating factors in determining a CMP assessment amount.\36\ These considerations include the party's financial resources.\37\ Interagency policy on CMP assessments includes this consideration.\38\ This requirement applies to all of the CMPs that have maximum levels above $1,000,000. Thus, by their own terms, these CMPs account for the financial impact on the penalized party, which guards against negative economic impact or social costs. In addition, the Board is not required to assess at the new maximum amounts. Accordingly, the Board finds that the economic and social considerations under the statute do not warrant seeking to invoke this exception. --------------------------------------------------------------------------- \36\ 12 U.S.C. 1786(k)(2)(G). \37\ 12 U.S.C. 1786(k)(2)(G)(i). \38\ Federal Financial Institutions Examination Council, Assessment of Civil Money Penalties, 63 FR 30226 (June 3, 1998). Table--NCUA CMP Assessments (1990-2016) ------------------------------------------------------------------------ ------------------------------------------------------------------------ Number of CMPs.......................................... 281 Aggregate Amount of CMP Assessments..................... $665,208 Average (Mean) Amount of Assessments.................... $2,367 ------------------------------------------------------------------------ C. Effective Date for Adjusted Maximum Amounts Finally, the 2015 amendments changed the effective date provision for adjusted CMPs. Before the 2015 amendments, the statute provided: ``Any increase under this Act in a civil monetary penalty shall apply only to violations which occur after the date the increase takes effect.'' \39\ Under that standard, the new maximums could only be assessed for violations that occurred after the date the adjustment took effect. The 2015 amendments changed this provision to read: ``Any increase under this Act in a civil monetary penalty shall apply only to civil monetary penalties, including those whose associated violation predated such increase, which are assessed after the date the increase takes effect.'' \40\ The OMB guidance notes this change.\41\ The adjusted maximums now apply to CMPs assessed after the effective date of the adjustment, even if the associated violation occurred before the adjustment took effect. The Board is amending 12 CFR 747.1001(b) to reflect this change. --------------------------------------------------------------------------- \39\ Public Law 104-134, Sec. 31001(s)(1), 110 Stat. 1321-373 (Apr. 26, 1996). \40\ Public Law 114-74, 129 Stat. 600 (Nov. 2, 2015), codified at 28 U.S.C. 2461 note. \41\ Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M-16-06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 4 (2016). --------------------------------------------------------------------------- III. Regulatory Procedures A. Interim Final Rule Under the Administrative Procedure Act In the 2015 amendments to the FCPIA Act, Congress directed agencies to issue an interim final rule for the 2016 inflation adjustments.\42\ OMB's guidance reiterated this requirement and stated that agencies therefore do not need to solicit comments prior to promulgating the rule.\43\ The legislative directive provides an exception to the APA's ordinary notice-and-comment requirement.\44\ In addition, the Board finds that notice-and-comment procedures would be impracticable and unnecessary under the APA because of: (1) the legislative directive to issue an interim final rule; (2) the largely ministerial and technical nature of the rule, which affords agencies limited [[Page 40157]] discretion in promulgating the rule; and (3) the statutory deadlines for publishing and making the interim final rule effective.\45\ In these circumstances, the Board finds good cause to issue an interim final rule without issuing a notice of proposed rulemaking. Accordingly, this interim final rule is issued without prior notice. However, the Board invites comments on all aspects of the interim final rule. The interim final rule will become effective 30 days from publication in the Federal Register.\46\ The Board will review and consider all comments before issuing a final rule. --------------------------------------------------------------------------- \42\ Public Law 114-74, 129 Stat. 600 (Nov. 2, 2015), codified at 28 U.S.C. 2461 note. \43\ Office of Mgmt. & Budget, Exec. Office of the President, OMB Memorandum No. M-16-06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 3 (2016). \44\ See 5 U.S.C. 559; Asiana Airlines v. Fed. Aviation Admin., 134 F.3d 393, 396-99 (D.C. Cir. 1998). \45\ 5 U.S.C. 553(b)(3)(B); see Mid-Tex Elec. Co-op., Inc. v. Fed. Energy Regulatory Comm'n, 822 F.2d 1123, 1133-34 (D.C. Cir. 1987). \46\ See 5 U.S.C. 553(d). --------------------------------------------------------------------------- B. Regulatory Flexibility Act The Regulatory Flexibility Act requires the Board to prepare an analysis to describe any significant economic impact a regulation may have on a substantial number of small entities.\47\ For purposes of this analysis, the Board considers small credit unions to be those having under $100 million in assets.\48\ This interim final rule would not have a significant economic impact on a substantial number of small credit unions because it only affects the maximum amounts of CMPs that may be assessed in individual cases, which are not numerous and generally do not involve assessments at the maximum level. In addition, several of the CMPs are limited to a percentage of a credit union's assets. Finally, in assessing CMPs, the Board generally must consider a party's financial resources.\49\ Because this interim final rule would affect few, if any, small entities, the Board certifies that the interim final rule will not have a significant economic impact on small entities. --------------------------------------------------------------------------- \47\ 5 U.S.C. 603(a). \48\ Interpretive Ruling and Policy Statement 15-1, 80 FR 57512 (Sept. 24, 2015). \49\ 12 U.S.C. 1786(k)(2)(G)(i). --------------------------------------------------------------------------- C. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in which an agency creates a new paperwork burden on regulated entities or modifies an existing burden.\50\ For purposes of the PRA, a paperwork burden may take the form of either a reporting or a recordkeeping requirement, both referred to as information collections. This interim final rule adjusts the maximum amounts of certain CMPs that the Board may assess against individuals, entities, or credit unions but does not require any reporting or recordkeeping. Therefore, this interim final rule will not create new paperwork burdens or modify any existing paperwork burdens. --------------------------------------------------------------------------- \50\ 44 U.S.C. 3507(d); 5 CFR part 1320. --------------------------------------------------------------------------- D. Executive Order 13132 Executive Order 13132 encourages independent regulatory agencies to consider the impact of their actions on state and local interests. In adherence to fundamental federalism principles, NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5), voluntarily complies with the executive order. This interim final rule adjusts the maximum amounts of certain CMPs that the Board may assess against individuals, entities, and federally insured credit unions, including state- chartered credit unions. However, the interim final rule does not create any new authority or alter the underlying statutory authorities that enable the Board to assess CMPs. Accordingly, this interim final rule will not have a substantial direct effect on the states, on the connection between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. The Board has determined that this interim final rule does not constitute a policy that has federalism implications for purposes of the executive order. E. Assessment of Federal Regulations and Policies on Families The Board has determined that this interim final rule will not affect family well-being within the meaning of Section 654 of the Treasury and General Government Appropriations Act, 1999.\51\ --------------------------------------------------------------------------- \51\ Public Law 105-277, 112 Stat. 2681 (Oct. 21, 1998). --------------------------------------------------------------------------- F. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act of 1996 \52\ (SBREFA) provides generally for congressional review of agency rules. A reporting requirement is triggered in instances where the Board issues a final rule as defined by Section 551 of the Administrative Procedure Act.\53\ The Board has submitted this interim final rule to OMB for it to determine whether it is a ``major rule'' within the meaning of the relevant sections of SBREFA. --------------------------------------------------------------------------- \52\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996). \53\ 5 U.S.C. 551. --------------------------------------------------------------------------- List of Subjects in 12 CFR Part 747 Credit unions, Civil monetary penalties. By the National Credit Union Administration Board on June 16, 2016. Gerard S. Poliquin, Secretary of the Board. For the reasons stated above, the NCUA Board amends 12 CFR part 747 as follows: PART 747--ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF PRACTICE AND PROCEDURE, AND INVESTIGATIONS 0 1. The authority citation for Part 747 is revised to read as follows: Authority: 12 U.S.C. 1766, 1782, 1784, 1785, 1786, 1787, 1790a, 1790d; 15 U.S.C. 1639e; 42 U.S.C. 4012a; Pub. L. 101-410; Pub. L. 104-134; Pub. L. 109-351; Pub. L. 114-74. Subpart K--Inflation Adjustment of Civil Monetary Penalties 0 2. Revise Sec. 747.1001 to read as follows: Sec. 747.1001 Adjustment of civil monetary penalties by the rate of inflation. (a) NCUA is required by the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note)) to adjust the maximum amount of each civil monetary penalty within its jurisdiction by the rate of inflation. The following chart displays those adjusted amounts, as calculated pursuant to the statute: ------------------------------------------------------------------------ U.S. Code citation CMP Description New maximum amount ------------------------------------------------------------------------ (1) 12 U.S.C. 1782(a)(3).... Inadvertent failure $3,787. to submit a report or the inadvertent submission of a false or misleading report. (2) 12 U.S.C. 1782(a)(3).... Non-inadvertent 37,872. failure to submit a report or the non- inadvertent submission of a false or misleading report. [[Page 40158]] (3) 12 U.S.C. 1782(a)(3).... Failure to submit a 1,893,610 or 1 report or the percent of the submission of a total assets of the false or misleading credit union, report done whichever is less. knowingly or with reckless disregard. (4) 12 U.S.C. 1782(d)(2)(A). Tier 1 CMP for 3,462. inadvertent failure to submit certified statement of insured shares and charges due to NCUSIF, or inadvertent submission of false or misleading statement. (5) 12 U.S.C. 1782(d)(2)(B). Tier 2 CMP for non- 34,620. inadvertent failure to submit certified statement or submission of false or misleading statement. (6) 12 U.S.C. 1782(d)(2)(C). Tier 3 CMP for 1,730,990 or 1 failure to submit a percent of the certified statement total assets of the or the submission credit union, of a false or whichever is less. misleading statement done knowingly or with reckless disregard. (7) 12 U.S.C. 1785(a)(3).... Non-compliance with 118. insurance logo requirements. (8) 12 U.S.C. 1785(e) (3)... Non-compliance with 275. NCUA security requirements. (9) 12 U.S.C. 1786(k)(2)(A). Tier 1 CMP for 9,468. violations of law, regulation, and other orders or agreements. (10) 12 U.S.C. 1786(k)(2)(A) Tier 2 CMP for 47,340. violations of law, regulation, and other orders or agreements and for recklessly engaging in unsafe or unsound practices or breaches of fiduciary duty. (11) 12 U.S.C. 1786(k)(2)(A) Tier 3 CMP for For a person other knowingly than an insured committing the credit union: violations under $1,893,610; Tier 1 or 2 For an insured (natural person). credit union: $1,893,610 or 1 percent of the total assets of the credit union, whichever is less. (12) 12 U.S.C. Non-compliance with 311,470. 1786(w)(5)(ii). senior examiner post-employment restrictions. (13) 15 U.S.C. 1639e(k)..... Non-compliance with First violation: appraisal $10,875 independence Subsequent requirements. violations: $21,749. (14) 42 U.S.C. 4012a(f)(5).. Non-compliance with 2,056. flood insurance requirements. ------------------------------------------------------------------------ (b) The adjusted amounts displayed in paragraph (a) of this section apply to civil monetary penalties that are assessed after the date the increase takes effect, including those whose associated violation or violations predate the increase. [FR Doc. 2016-14719 Filed 6-20-16; 8:45 am] BILLING CODE 7535-01-P
![40152 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations
removing the words ‘‘It must state:’’ and APHIS, Veterinary Services, National Pages/rules/proposed.aspx. Follow the
adding the words ‘‘Forms may be Center for Import and Export, 4700 instructions for submitting comments.
provided to the inspector using a U.S. River Road Unit 38, Riverdale, MD • Email: Address to regcomments@
Government electronic information 20737–1231, or at http:// ncua.gov. Include ‘‘[Your name]
exchange system or other authorized www.aphis.usda.gov/animal_health/ Comments on ‘‘Civil Monetary Penalty
method. The completed form must permits/. Forms may be submitted using Inflation Adjustment’’ in the email
state:’’ in their place. a U.S. Government electronic subject line.
information exchange system or other • Fax: (703) 518–6319. Use the
■ 28. In § 93.905, paragraph (b) is added subject line described above for email.
to read as follows: authorized method. The application for
such a permit must state the intended • Mail: Address to Gerard Poliquin,
§ 93.905 Declaration and other documents use of the gelatin and name and address Secretary of the Board, National Credit
for live fish, fertilized eggs, and gametes. of the consignee in the United States. Union Administration, 1775 Duke
* * * * * Street, Alexandria, Virginia 22314–
(b) Any declaration, permit, or other § 94.27 [Amended] 3428.
document for live fish, fertilized eggs, ■ 33. In § 94.27, the introductory text of • Hand Delivery/Courier: Same as
and gametes required under this subpart paragraph (b) is amended by adding the mail address.
Public Inspection: All public
may be issued and presented using a words ‘‘Notification may be made using
comments are available on the agency’s
U.S. Government electronic information a U.S. Government electronic
Web site at http://www.ncua.gov/
exchange system or other authorized information exchange system or other
RegulationsOpinionsLaws/comments as
method. authorized method.’’ after the words
submitted, except as may not be
* * * * * ‘‘before such transit.’’
possible for technical reasons. Public
Done in Washington, DC, this 15th day of comments will not be edited to remove
PART 94—RINDERPEST, FOOT-AND- June 2016. any identifying or contact information.
MOUTH DISEASE, NEWCASTLE Kevin Shea, Paper copies of comments may be
DISEASE, HIGHLY PATHOGENIC Administrator, Animal and Plant Health inspected in NCUA’s law library at 1775
AVIAN INFLUENZA, AFRICAN SWINE Inspection Service. Duke Street, Alexandria, Virginia 22314,
FEVER, CLASSICAL SWINE FEVER, [FR Doc. 2016–14616 Filed 6–20–16; 8:45 am] by appointment weekdays between 9:00
SWINE VESICULAR DISEASE, AND a.m. and 3:00 p.m. To make an
BILLING CODE 3410–34–P
BOVINE SPONGIFORM appointment, call (703) 518–6546 or
ENCEPHALOPATHY: PROHIBITED send an email to OGCMail@ncua.gov.
AND RESTRICTED IMPORTATIONS
NATIONAL CREDIT UNION FOR FURTHER INFORMATION CONTACT: Ian
■ 29. The authority citation for part 94 ADMINISTRATION Marenna, Senior Trial Attorney, at 1775
continues to read as follows: Duke Street, Alexandria, VA 22314, or
12 CFR Part 747 telephone: (703) 518–6540.
Authority: 7 U.S.C. 450, 7701–7772, 7781–
7786, and 8301–8317; 21 U.S.C. 136 and RIN 3133–AE59 SUPPLEMENTARY INFORMATION:
136a; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, and I. Legal Background
371.4. Civil Monetary Penalty Inflation II. Calculation of Adjustments
Adjustment III. Regulatory Procedures
§ 94.6 [Amended]
AGENCY: National Credit Union I. Legal Background
■ 30. In § 94.6, paragraph (d) is Administration (NCUA).
amended by adding the words ‘‘or visit A. Statutory Requirements and
ACTION: Interim final rule with request
http://www.aphis.usda.gov/animal_ Overview of Changes Enacted in 2015
health/permits/’’ at the end of the for comments.
sentence. The Debt Collection Improvement Act
SUMMARY: The NCUA Board (Board) is of 1996 1 (DCIA) amended the Federal
§ 94.15 [Amended] amending its regulations to adjust the Civil Penalties Inflation Adjustment Act
maximum amount of each civil of 1990 2 (FCPIA Act) to require every
■ 31 In § 94.15, paragraphs (b)(1) and monetary penalty (CMP) within its
(c)(1) are amended by adding the words federal agency to enact regulations that
jurisdiction to account for inflation. adjust each CMP provided by law under
‘‘or by visiting http:// This action, including the amount of the
www.aphis.usda.gov/animal_health/ its jurisdiction by the rate of inflation at
adjustments, is required under the least once every four years. The Board
permits/’’ after the numbers ‘‘20737– Federal Civil Penalties Inflation
1231’’. most recently adjusted CMPs within its
Adjustment Act of 1990, as amended by jurisdiction in September 2015.3
■ 32. In § 94.24, paragraph (b)(2) is the Debt Collection Improvement Act of In November 2015, Congress further
revised to read as follows: 1996 and the Federal Civil Penalties amended the CMP inflation
§ 94.24 Restrictions on importation of
Inflation Adjustment Act Improvements requirements in the Bipartisan Budget
meat and edible products from ovines and Act of 2015. Act of 2015,4 which contains the
caprines due to bovine spongiform DATES: This interim final rule is Federal Civil Penalties Inflation
encephalopathy. effective July 21, 2016. Comments must Adjustment Act Improvements Act of
* * * * * be received on or before July 21, 2016. 2015 (the 2015 amendments).5 This
(b) * * * ADDRESSES: You may submit comments
(2) The person importing the gelatin
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by any of the following methods (Please 1 Public Law 104–134, sec. 31001(s), 110 Stat.
obtains a United States Veterinary send comments by one method only): 1321–373 (Apr. 26, 1996). The law is codified at 28
U.S.C. 2461 note.
Permit for Importation and • Federal eRulemaking Portal: http:// 2 Public Law 101–410, 104 Stat. 890 (Oct. 5,
Transportation of Controlled Materials www.regulations.gov. Follow the 1990), also codified at 28 U.S.C. 2461 note.
and Organisms and Vectors by filing a instructions for submitting comments. 3 80 FR 57284 (Sept. 23, 2015).
permit application on VS Form 16–3. • NCUA Web site: https:// 4 Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015).
Permit applications are available from www.ncua.gov/regulation-supervision/ 5 129 Stat. 599.
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![40156 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations
B. Application of the 150 Percent Cap ‘‘social costs’’ posed by the otherwise- C. Effective Date for Adjusted Maximum
and Two Exceptions required increases. The statute and the Amounts
This section describes in detail the OMB guidance do not define these Finally, the 2015 amendments
Board’s consideration of the 150 percent terms. In applying these criteria, the changed the effective date provision for
cap, the exception based on greater Board has considered the overall adjusted CMPs. Before the 2015
increases in the preceding 12 months, amount of its CMP assessments and amendments, the statute provided:
and the exception based on negative their likely impact on credit unions and ‘‘Any increase under this Act in a civil
economic impact or social costs. individuals. NCUA historically has not monetary penalty shall apply only to
First, as shown in the table above, the assessed CMPs frequently. They have violations which occur after the date the
Board has applied the 150 percent cap averaged 10.6 a year, or less than one a increase takes effect.’’ 39 Under that
on the amount of the increase of the month, over the past quarter century. standard, the new maximums could
initial adjustments and has determined Furthermore, when NCUA has assessed only be assessed for violations that
that it must limit the increase in the CMPs it has not usually assessed them occurred after the date the adjustment
security requirements CMP.31 The other at or near the maximum levels allowed took effect. The 2015 amendments
CMPs are not affected. by law, which would be most likely to changed this provision to read: ‘‘Any
Second, the Board has compared the increase under this Act in a civil
invoke economic impact or social cost
increases calculated above with the monetary penalty shall apply only to
concerns. The Board reviewed the 281
increases that it made in September civil monetary penalties, including
2015 32 to determine whether any of CMP orders that it has issued since 1990
those whose associated violation
those increases are greater than the and found that they total approximately predated such increase, which are
increases calculated for 2016. In $665,000, with an average (mean) value assessed after the date the increase takes
September 2015, the Board adjusted this of approximately $2,400. The table at effect.’’ 40 The OMB guidance notes this
CMP to $11,000.33 This occurred the end of this section summarizes this change.41 The adjusted maximums now
because under the pre-2015 information. Based on historical trends, apply to CMPs assessed after the
amendments procedures, the Board third tier CMPs appear likely to remain effective date of the adjustment, even if
rounded the amount of the increase to rare. Moreover, NCUA considers the the associated violation occurred before
the nearest multiple of $1,000. Under size of the credit union in determining the adjustment took effect. The Board is
the amended FCPIA Act, the Board the amount of a CMP assessment. These amending 12 CFR 747.1001(b) to reflect
could leave this adjustment in place factors indicate that the increased this change.
because ‘‘during the 12 months maximums will not cause a negative III. Regulatory Procedures
preceding [the] required cost-of-living economic impact or social costs. Also,
adjustment,’’ the Board increased the for most of its CMPs, the Board is A. Interim Final Rule Under the
CMP ‘‘by an amount greater than the required by statute to consider potential Administrative Procedure Act
amount of the adjustment required’’ by mitigating factors in determining a CMP In the 2015 amendments to the FCPIA
the new calculation.34 Under these assessment amount.36 These Act, Congress directed agencies to issue
circumstances, the Board is ‘‘not considerations include the party’s an interim final rule for the 2016
required’’ to make the otherwise- financial resources.37 Interagency policy inflation adjustments.42 OMB’s
required adjustment.35 The Board has on CMP assessments includes this guidance reiterated this requirement
determined that it will not invoke this consideration.38 This requirement and stated that agencies therefore do not
exception, which is not mandatory. applies to all of the CMPs that have need to solicit comments prior to
First, the difference between the maximum levels above $1,000,000. promulgating the rule.43 The legislative
maximum set in 2015 and the maximum directive provides an exception to the
Thus, by their own terms, these CMPs
calculated above is immaterial. Second, APA’s ordinary notice-and-comment
account for the financial impact on the
the Board expects the federal banking requirement.44 In addition, the Board
regulators and the Consumer Financial penalized party, which guards against
negative economic impact or social finds that notice-and-comment
Protection Bureau, which also have procedures would be impracticable and
jurisdiction to enforce this CMP, to costs. In addition, the Board is not
unnecessary under the APA because of:
make their first adjustment of this CMP required to assess at the new maximum
(1) the legislative directive to issue an
this year. By declining to invoke this amounts. Accordingly, the Board finds
interim final rule; (2) the largely
exception, the Board will set the that the economic and social
ministerial and technical nature of the
maximum at the same level as those considerations under the statute do not rule, which affords agencies limited
agencies, which means that parties warrant seeking to invoke this
subject to this CMP will not face exception. 39 Public Law 104–134, § 31001(s)(1), 110 Stat.
differing maximums based on which 1321–373 (Apr. 26, 1996).
agency has jurisdiction. This exception TABLE—NCUA CMP ASSESSMENTS 40 Public Law 114–74, 129 Stat. 600 (Nov. 2,
does not apply to the other CMPs 2015), codified at 28 U.S.C. 2461 note.
(1990–2016) 41 Office of Mgmt. & Budget, Exec. Office of the
because the adjustments required in President, OMB Memorandum No. M–16–06,
2016 exceed those made in 2015. Number of CMPs .................. 281 Implementation of the Federal Civil Penalties
Finally, the Board does not seek to Aggregate Amount of CMP Inflation Adjustment Act Improvements Act of
invoke the discretionary limitation tied Assessments ..................... $665,208 2015, at 4 (2016).
42 Public Law 114–74, 129 Stat. 600 (Nov. 2,
to ‘‘negative economic impact’’ or Average (Mean) Amount of
2015), codified at 28 U.S.C. 2461 note.
Assessments ..................... $2,367
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43 Office of Mgmt. & Budget, Exec. Office of the
28 28 U.S.C. 2461 note, § 3(2). President, OMB Memorandum No. M–16–06,
31 12 U.S.C. 1785(e)(3).
Implementation of the Federal Civil Penalties
32 These increases are set forth at 80 FR 57285– 36 12U.S.C. 1786(k)(2)(G). Inflation Adjustment Act Improvements Act of
286 (Sept. 23, 2015). 37 12U.S.C. 1786(k)(2)(G)(i). 2015, at 3 (2016).
33 80 FR 57285 (Sept. 23, 2015). 38 Federal Financial Institutions Examination 44 See 5 U.S.C. 559; Asiana Airlines v. Fed.
34 Public Law 114–74, sec. 701(b)(1)(D), 129 Stat. Council, Assessment of Civil Money Penalties, 63 Aviation Admin., 134 F.3d 393, 396–99 (D.C. Cir.
600, codified at 28 U.S.C. 2461 note. FR 30226 (June 3, 1998). 1998).
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![40158 Federal Register / Vol. 81, No. 119 / Tuesday, June 21, 2016 / Rules and Regulations
U.S. Code citation CMP Description New maximum amount
(3) 12 U.S.C. 1782(a)(3) .................................... Failure to submit a report or the submission of 1,893,610 or 1 percent of the total assets of
a false or misleading report done knowingly the credit union, whichever is less.
or with reckless disregard.
(4) 12 U.S.C. 1782(d)(2)(A) ................................ Tier 1 CMP for inadvertent failure to submit 3,462.
certified statement of insured shares and
charges due to NCUSIF, or inadvertent
submission of false or misleading statement.
(5) 12 U.S.C. 1782(d)(2)(B) ................................ Tier 2 CMP for non-inadvertent failure to sub- 34,620.
mit certified statement or submission of
false or misleading statement.
(6) 12 U.S.C. 1782(d)(2)(C) ............................... Tier 3 CMP for failure to submit a certified 1,730,990 or 1 percent of the total assets of
statement or the submission of a false or the credit union, whichever is less.
misleading statement done knowingly or
with reckless disregard.
(7) 12 U.S.C. 1785(a)(3) .................................... Non-compliance with insurance logo require- 118.
ments.
(8) 12 U.S.C. 1785(e) (3) ................................... Non-compliance with NCUA security require- 275.
ments.
(9) 12 U.S.C. 1786(k)(2)(A) ................................ Tier 1 CMP for violations of law, regulation, 9,468.
and other orders or agreements.
(10) 12 U.S.C. 1786(k)(2)(A) .............................. Tier 2 CMP for violations of law, regulation, 47,340.
and other orders or agreements and for
recklessly engaging in unsafe or unsound
practices or breaches of fiduciary duty.
(11) 12 U.S.C. 1786(k)(2)(A) .............................. Tier 3 CMP for knowingly committing the vio- For a person other than an insured credit
lations under Tier 1 or 2 (natural person). union: $1,893,610;
For an insured credit union: $1,893,610 or 1
percent of the total assets of the credit
union, whichever is less.
(12) 12 U.S.C. 1786(w)(5)(ii) .............................. Non-compliance with senior examiner post- 311,470.
employment restrictions.
(13) 15 U.S.C. 1639e(k) ..................................... Non-compliance with appraisal independence First violation: $10,875
requirements. Subsequent violations: $21,749.
(14) 42 U.S.C. 4012a(f)(5) ................................. Non-compliance with flood insurance require- 2,056.
ments.
(b) The adjusted amounts displayed in 2010–11–10 requires inspection of Examining the AD Docket
paragraph (a) of this section apply to certain third stage turbine wheels and You may examine the AD docket on
civil monetary penalties that are removal of any damaged wheel. This AD the Internet at http://
assessed after the date the increase takes requires expanding the population and www.regulations.gov by searching for
effect, including those whose associated frequency of repetitive inspections. This and locating Docket No. FAA–2010–
violation or violations predate the AD was prompted by a report of a third 0219; or in person at the Docket
increase. stage turbine wheel crack detected Management Facility between 9 a.m.
[FR Doc. 2016–14719 Filed 6–20–16; 8:45 am] during engine overhaul. We are issuing and 5 p.m., Monday through Friday,
BILLING CODE 7535–01–P
this AD to prevent uncontained failure except Federal holidays. The AD docket
of the third stage turbine wheel, which contains this AD, the mandatory
could result in damage to the engine continuing airworthiness information,
and damage to the helicopter. regulatory evaluation, any comments
DEPARTMENT OF TRANSPORTATION
DATES: This AD is effective July 26, received, and other information. The
Federal Aviation Administration 2016. address for the Docket Office (phone:
The Director of the Federal Register 800–647–5527) is Document
14 CFR Part 39 approved the incorporation by reference Management Facility, U.S. Department
of certain publications listed in this AD of Transportation, Docket Operations,
[Docket No. FAA–2010–0219; Directorate
as of July 26, 2016. M–30, West Building Ground Floor,
Identifier 2010–NE–14–AD; Amendment 39–
18556; AD 2016–12–07] ADDRESSES: For service information Room W12–140, 1200 New Jersey
identified in this final rule, contact Avenue SE., Washington, DC 20590.
RIN 2120–AA64 Turbomeca S.A., 40220 Tarnos, France; FOR FURTHER INFORMATION CONTACT:
phone: (33) 05 59 74 40 00; fax: (33) 05 Brian Kierstead, Aerospace Engineer,
Airworthiness Directives; Turbomeca
59 74 45 15. You may view this service Engine Certification Office, FAA, Engine
S.A. Turboshaft Engines
information at the FAA, Engine & & Propeller Directorate, 1200 District
AGENCY: Federal Aviation Propeller Directorate, 1200 District Avenue, Burlington, MA 01803; phone:
Avenue, Burlington, MA. For
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Administration (FAA), DOT. 781–238–7772, fax: 781–238–7199;
ACTION: Final rule. information on the availability of this email: brian.kierstead@faa.gov.
material at the FAA, call 781–238–7125. SUPPLEMENTARY INFORMATION:
SUMMARY: We are superseding It is also available on the Internet at
airworthiness directive (AD) 2010–11– http://www.regulations.gov by searching Discussion
10 for all Turbomeca S.A. Astazou XIV for and locating Docket No. FAA–2010– We issued a notice of proposed
B and XIV H turboshaft engines. AD 0219. rulemaking (NPRM) to amend 14 CFR
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Document Created: 2016-06-21 01:30:48
Document Modified: 2016-06-21 01:30:48
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Interim final rule with request for comments. | |
| Dates | This interim final rule is effective July 21, 2016. Comments must be received on or before July 21, 2016. | |
| Contact | Ian Marenna, Senior Trial Attorney, at 1775 Duke Street, Alexandria, VA 22314, or telephone: (703) 518-6540. | |
| FR Citation | 81 FR 40152 | |
| RIN Number | 3133-AE59 | |
| CFR Associated | Credit Unions and Civil Monetary Penalties |
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